On the 21st (Yonhap News), a surge in “patriotism” was observed in the Korean stock market, with significant price fluctuations for both Monami and Hansung Corp. In particular, Monami’s shares fell sharply after peaking at 3,730 won on the 16th of last month, erasing gains made over the past month.
Monami’s shares had risen roughly three times higher than their pre‑closing level just before the listing rules were tightened. However, on the 21st they dropped 5.98% to close at 1,353 won. The sudden rise and fall are interpreted as being triggered by online investors’ “Patriotic Company Rally” campaign.
Hansung Corp’s shares behaved similarly: on June 26th they rose from 4,145 won to 15,000‑plus, but then fell on the 20th, dropping to 5,150 won.
The price swings of these two companies appear to be caused by online hype around “patriotism.” Hansung Corp had previously been announced as having received a large donation for its new product line, which was widely shared on social media and led to speculation that it could not be delisted. The financial authorities had introduced new listing criteria last month, including a market cap of 30 billion won or less. It turned out that Hansung Corp’s market cap exceeded 300 million won. In response, there were purchases for product lines and stock acquisitions.
Meanwhile, Monami revealed that it is a domestic brand replacing Japanese stationery, being named “patriot” on social media. Hansung also rode the wave of the “Patriotic Company” image. Yet, despite support from individual investors, its performance and growth momentum are lacking. Monami’s sales in the first half of this year fell 5.6% compared with the same period last year, while operating profit margin increased 69%. As stationery demand falls steadily, it has been judged that the company has not succeeded in its stationery business. Hansung Corp also was found to have weak performance and could not withstand price swings.
Reporter Lim Da‑yeon (Yonhap News)